Question: When obtaining an understanding of an entitys internal control, an auditor should concentrate on the substance of controls rather than their form because a. The

When obtaining an understanding of an entity’s internal control, an auditor should concentrate on the substance of controls rather than their form because

a. The controls may be operating effectively but may not be documented.

b. Management may establish appropriate controls but not enforce compliance with them.

c. The controls may be so inappropriate that no reliance is contemplated by the auditor.

d. Management may implement controls whose costs exceed their benefits.

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